Smaller Crop Brightens
Apple Market Outlook

By Greg Brown
Associate Editor

This year’s smaller apple crop has growers optimistic about the marketing of apples.

National production of apples will be down 7%, according to the U.S. Apple Association’s (USApple) forecast of 213 million bushels – the smallest crop in 14 years. It will be 15% lower than the five-year average, but could reflect a trend for an industry that has struggled with too many years of oversupply.

Washington apple grower Larry Olsen called the marketing outlook for this year’s crop the best the industry has seen in years. The prediction comes despite a rough ride of weather experienced by growers across all apple growing regions.

Olsen, of Olsen Brothers in Prosser, Wash. gave his insight into the apple season while acting as master of ceremonies at the USApple Outlook and Marketing Conference in Chicago Aug. 22-23.

The overall mood of the conference was described as optimistic, perhaps because of the odd weather that had thinned this year’s available crop.

“While the weather from frosts early this season will hurt many growers, the remaining fruit will be that much more valuable,” said Jim Cranney, vice president of USApple. At the predicted levels, this year’s crop comes closest to the small crop in 1988.

“It just feels like a weight has been lifted off the shoulders of the industry,” said Welcome Sauer, director of the Washington Apple Commission.

“We are really looking ahead with optimism after last year. It feels like the industry has really turned a corner with this year’s crop. With this year’s short crop, combined with next year’s traditionally short biennial production levels, the industry should be able to gain back some of its lost income.”

Washington predicted that it would ship 88.8 million bushels of fresh fruit out of its 129 million bushels forecasted for the state.

“Growers in Washington are a lot more optimistic than they have been, but they are certainly not out of the woods yet,” said Sauer.

The Western region forecast for this year represents a 3% increase in crop size from last year, but it will be down 7% from the five-year average.

“We have had an unusually cool season, which has presented us with a crop that is quite variable throughout the state,” said Ed Kershaw, of Kershaw Fruit Companies, Yakima, Wash. “After initial cool weather, we then had warm weather that has continued to keep the size relatively small.”

Washington will be up 7% from last year’s crop at 129 million bushels, which is 2% below the five-year average, according to the USApple forecast. Another reason for Washington’s smaller than average crop is the continued removal of Red Delicious blocks, which totaled nearly 10,000 acres this past year. The year prior, 24,000 acres of apples were removed.

“We have a reason to be excited about what this year will bring and I think that everyone in the industry should be excited,” Kershaw said.

Besides the short crop, Washington’s crop size is being affected by new regulations governing fruit standards and carryover. The Washington apple industry can no longer carryover previous year’s apples past Oct. 1. All apples shipped prior to Oct. 1 from the state will be required to have an 11% brix level. Gala and Jonagold apples will be required to have 11 pounds of firmness year round.

California’s removal of apple acres has slowed, according to industry sources. “I think that the bloodletting is beginning to slow. Hopefully, we have begun the slow climb back up,” said Kenton Kidd, of the California Apple Commission.

California growers are harvesting a good crop of apples, but massive acreage pullouts dropped the state’s predicted total 18% from last year’s 16.6 million bushels. California’s producers predict 13.6 million bushels this year, down 29% from the five-year average of 19.3 million bushels.

“We are seeing a few apples acres being planted. And, I don’t see the major pullouts coming that we experienced last year. Overall, we are anticipating a good marketing season and are happy with the way things are looking,” said Kidd.

Oregon, Idaho and Utah, also posted dips in apple production this year. Apple production in Oregon is declining as more land is being transferred into grapes and pears. Colorado and Arizona were the only states besides Washington to post an increase in crop over last year. Colorado’s 4% gain paled in comparison to Arizona’s gigantic 675% gain over last year’s catastrophic crop.

In New York, growers experienced a particularly damaging growing season, according to Jim Allen, New York Apple Association’s director. This year’s crop will be down 33% from 2001, at 16 million bushels. More troubling is the state’s 38% drop from the five-year average of 25.9 million bushels. Harsh weather including early frosts and late-season winds and hail were blamed for the large decline.

Pennsylvania predicted 9.3 million bushels of apples, down 19% from last year (11.4 million bushels) and 18% under the five-year average.

Growers from the East also have smaller offerings this year. Growers up and down the eastern seaboard posted predicted drops from the five-year average ranging from just 10% in Maine to 61% in South Carolina. Maine, North Carolina, South Carolina, Rhode Island and Georgia were the only states in the East to post gains over last year’s crop.

Midwest states also posted a smaller crop. Michigan growers and packers predicted a crop of 15.3 million bushels, down 27% from last year’s crop and 34% less than the five-year average. Don Armock, of Riveridge Produce in Sparta, Mich., said the smaller crop in the region would still be enough to give the packers a relatively normal shipping season.

“It’s going to be business as usual for the packers, but we will finish earlier,” said Armock. “I suspect that we will finish minor varieties in the early spring. On our major varieties, we will finish in late May to early June.”

Throughout the Midwest, all growing states saw decreases from the five-year average of production. Wisconsin, Kentucky and Kansas were the only states to improve or remain at the same level as last year’s production.

But, conference speakers gave a positive message to growers about this year’s crop.

“This year is a perfect indicator that things are getting better, said Kershaw. “We are learning that there is value in apples and the apple industry. The next three to five years will be a real shining star for the apple industry.”



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